AFI Europe Romania posts 12 pct higher net operating income in Q1 2018

AFI Europe Romania’s net operating income (NOI) from its income producing assets in Romania reached EUR 13.6 million during Q1 2018, a 12 percent increase from Q1 2017.

AFI Cotroceni, the largest and most dominant shopping mall in Romania, reported a NOI of over EUR 9 million in 3 months representing an 8 percent increase compared to Q1 2017. The number of visitors to AFI Cotroceni increased to 56,000 visitors per day during Q1, a 13 percent increase compared to Q1 2017, resulting mainly from the expansion of the Zara shop to a 4,000 sqm store and Peek&Cloppenburg which opened end of last year.

Consequently, AFI Cotroceni retailer’s sales (turnover) increased as well by 6 percent compared to Q1 2017. AFI Cotroceni was valued last year at EUR 501 million.

The turnover of AFI Ploiesti, a shopping mall of 34,000 sqm GLA, rose by 11 percent to over RON 65 million compared to Q1 2017. The number of visitors is over 15,000 shoppers per day and the occupancy rate of the shopping mall in Ploiesti remains steady at 99 percent. Due to the good results, an additional expansion is currently planned for the shopping mall in Ploiesti.

The AFI Park office project, 70,000 sqm GLA with a projected yearly income of EUR 13 million, is leased 99 percent and the value of the 5 office buildings is EUR 165 million, according to the valuation performed in 2017.

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The construction works on AFI Brasov are advancing and the mall and offices are due to open in 2019. The mall will spread on an area of 45,000 sqm GLA and will include 200 shops and retail units. Raising above the mall, two class A office buildings shall be constructed totalling 25,000 sqm of GLA.

“Q1 2018 has once again shown continuous growth, in all parameters such as a 12 percent increase in NOI to EUR 13.6 million in 3 months compared to Q1 2017, increased number of visitors in the shopping malls, new office leases in AFI Tech, expansions of the existing shopping malls’ GLA and launching sales in our first residential project AFI City. Our overall occupancy in the income producing assets is 99 percent. In addition, we have 3 diversified ongoing projects under construction; AFI Brasov mall & offices, AFI Tech Park offices which are close to 40% pre-leased and AFI City Residential. We continue to maintain our interest for new opportunities, whether developments of new shopping centers or office projects,” says David Hay, CEO AFI Europe Romania.

In addition, in the office segment, construction works for AFI Tech Park 1 in Bucharest are to be completed this month and the pre-lease is close to 40 percent. The first office building’s tenants will move in during August 2018.

AFI Tech Park 1 features 20,000 sqm GLA office space and 2,000 sqm of retail area (including world class fitness club, canteen and Quick Service Restaurant “1 Minute”), efficiently spread over 8 above ground floors serviced by two underground parking levels. AFI Tech Park 1 is Pre-Certified LEED Platinum.

During Q1, AFI Europe Romania has launched the sales of its first residential project in Romania, AFI City, located in Bucurestii Noi. As phase I, two residential buildings consisting of 190 apartments, 16,000 sqm of built up area are planned to commence construction by the end of this month. AFI City was awarded pre-certification as a Green Certified Project by the Romanian Green Building Council.